How to buy Bitcoin in Australia in 2021

How to buy Bitcoin in Australia in 2021

Daniel Chan

March 6, 2021

Cryptocurrency

What is Bitcoin (BTC)?

Bitcoin is the original digital currency, otherwise known as cryptocurrency, created in 2009 that relies on peer-to-peer technology to facilitate instant payments with no central authority or banks. It remains the largest cryptocurrency by market capitalisation and has increased dramatically in value over the last few years. Due to the increasing popularity of cryptocurrency since 2017, a bunch of great Australian-based cryptocurrency exchanges have popped up to make it super easy to buy Bitcoin.

Where can I buy Bitcoin?

Since Bitcoin is the world's most popular cryptocurrency, you can buy Bitcoin on any cryptocurrency exchange. With so many options, it can be tough to decide which one to use. The most important thing is that you select a legitimate crypto exchange that doesn't scam you. To make sure you are buying Bitcoin safely, I recommend using one of the best crypto exchanges for Aussies. They all have registration with AUSTRAC to prevent money laundering and financing of terrorism, so you can trust they are legitimate exchanges.

I have listed my top 3 recommendations for Australian investors below. I am going to outline a step-by-step guide to buy Bitcoin using screenshots from our exchange of choice Swyftx (Australian exchange that is giving $10 to every new customer). They're our top choice for Australians and the registration process is nearly identical on mobile. If you want to follow along with the guide easily, you can sign up with Swyftx too.

Top 3 Recommendations

#1

Swyftx

   Best Overall  

Rating

4.9

#2

CoinSpot

Most Trusted

Rating

4.6

#3

Digital Surge

   Best for Low Fees

Rating

4.4

Step 1 - Open a Swyftx account

Simply go to https://trade.swyftx.com.au/register/ and fill out the short form.

Once you click complete, you will be instantly taken to the Swyftx dashboard.

Step 2 - Verify your identity

Next step is navigate to the left hand side of the screen and click 'Profile', a dropdown menu will appear, click 'Verification' (highlighted in blue).

Follow the prompts and verify your mobile, email and ID. It shouldn't take more than a few minutes, it's easy and straightforward. 

Step 3 - Deposit into your account

After verification is complete navigate to 'Trade' on your left hand menu (same on mobile and app). When the dropdown menu appears select the 'Deposit' option (highlighted in blue).

You have a few options to choose from here: Bank Transfer - OSKO (Instant), POLi (Instant), PayID (1 business day), Credit Card (30 - 45 minutes).

The easiest and most popular is a bank transfer using OSKO, which is a simple transfer using BSB and Account number, the same as when you send money to your friends. This is the method we used and it took less than 1 minute to see our $100 appear in our Swyftx account.

Step 4 - Entering the trade

Now it's time to begin the actual buying process, navigate to the 'Trade' tab on the left hand menu, then select 'Buy' from the drop down menu (highlighted in blue in the screenshot below). 

In the search bar below the word Trade in the blue section, type in the cryptocurrency you want to buy. In this case, we want to buy Bitcoin. You can type in 'Bitcoin' or 'BTC' which is the ticker symbol for Bitcoin. Select Bitcoin from the list of assets that show up. Be careful not to select the other options such as Bitcoin Standard Hashrate, Bitcoin Cash, or Wrapped Bitcoin.

Notice in the screenshot there are a list of tab options above the Bitcoin logo: Buy, Sell, Swap, Charts, Alerts, Orders, Deposit, Withdraw and Info. Make sure you select the 'Buy' tab.

Step 5 - Select the trade type and amount

You can see the price of your desired asset (Bitcoin) against your base currency (AUD). At the time of writing, the price was around $67 500 AUD for 1 Bitcoin.

Below the price you will notice four options on how to execute your trade. These are 'Market', 'Limit', 'Stop' and 'Recurring' (circled in blue below). Don't be intimidated, these are actually pretty simple to understand.

Market means you instantly buy now at the market price (shown directly above it). In the screenshot above, it would mean buying Bitcoin at ~$67 515.

Limit is a tool you would use if you are only willing to buy Bitcoin if the price drops. For example, let's say you were only willing to buy Bitcoin at $67k and not the current market rate of $67.5k, you could set a limit buy order and set the price to trigger at $67k. If and when the price of Bitcoin drops to $67k your trade would automatically be executed. 

Stop is similar to Limit but it sets a trigger at higher than the current market rate. This is for investors that think that if Bitcoin increases to a certain price, it will continue on a bull run upwards. For example, the market rate for Bitcoin may have been hovering at around $67.5k for a few weeks. An investor might believe that if the price breaks through the $70k barrier, it will keep going up to at least $80k. In this instance, he would choose the Stop Buy option to trigger at $70k. If the price of BTC reaches $70k, it will automatically buy it for him. It will not charge him $70k for Bitcoin if the market price is $67.5k. His order is only fulfilled if the price increases to $70k. 

Recurring is a tool to set up a regularly occurring buy order at a set interval. Instead of buying once right now, you can spread your buys across a particular time frame. This is called dollar cost averaging and it's an investment strategy to reduce the effect of market volatility.

For this tutorial, we chose the simplest option which is Market, allowing us to buy Bitcoin immediately at the current price.

Now you need to choose the amount you want to invest. Swyftx have made a simple tool which allows you to quickly select a certain percentage of your overall balance. If this is not for you, you can always choose to enter a specific dollar amount. In my example, I have chosen $500 AUD. You can see this circled in green in the screenshot above.

After you have selected the amount you wish to buy, click the blue 'Instant Buy' button. You will then be faced with a confirmation pop-up.

Here you can see the current market rate you're buying at and the fee you will pay. Once you have checked those details and you are happy, hit the green 'Confirm Buy' button.

Step 6 - Sit back and enjoy your Bitcoin

Congratulations, you are now the owner of some Bitcoin!

If you want to learn more about Swyftx, then feel free to read our review on them where you can see exactly how they operate, how much fees they charge, and all their excellent features.

If you want to you want to explore other Australian crypto exchange options then feel free to read our guide on the best Australian crypto exchanges.

Any questions feel free to leave a comment below.

We recommend Swyftx for buying Bitcoin

  • Their small spreads offer great value for traders
  • Access to hundreds of different cryptocurrencies
  • Free $10 if you sign up through us

Other Cryptocurrency Exchanges where you can Buy Bitcoin:

Comparison Table of the Best Crypto Exchanges in Australia

Swyftx
CoinSpot
Digital Surge
eToro
Binance
Crypto Exchange
Crypto Exchange
Swyftx
CoinSpot
Digital Surge
eToro
Binance
Fiat Currencies
Fiat Currencies
AUD
AUD
AUD
AUD, USD, GBP, EUR & 11 more
AUD, USD, GBP, EUR, CAD, HKD, JPY & 35 more
Cryptocurrencies
Cryptocurrencies
BTC, BTG, BCH, ADA, ETH, ETC & 270+ more
BTC, ETH, LTC, XRP, BCH, ADA & 300+ more
BTC, ETH, BNB, ADA, XRP & 270+ more
BTC, ETH, BCH, XRP, LTC, ADA & 24 more
BTC, ETH, LTC, BNB, ADA, XRP & 300+ more
Deposit Methods
Deposit Methods
POLi, PayID, OSKO, Bank transfer, Credit card, Cryptocurrency
Bank transfer, BPAY, Cash, POLi, PayID, Cryptocurrency
PayID, POLi, OSKO, Cryptocurrency
Bank Transfer, Credit card, Debit card, PayPal, POLi
PayID, OSKO, Cryptocurrency
Trading Fees
Trading Fees
0.6%
Market order: 0.1%, Instant buy: 1%
Market order: starts from 0.5%, Instant buy: 0.5%
Included in spreads
0.1%

Buying Bitcoin in Australia: What You Need to Know

The media has been full of talk about Bitcoin in recent months, but how much do you really know about it? Digital currencies have been becoming more mainstream in general and many people have reported making good returns from investing in Bitcoin and other cryptocurrencies. As a result, there’s increased demand when it comes to buying and selling.

To find out how to buy Bitcoin in Australia, take a look at our step-by-step guide that will tell you everything you need to know.

Bitcoin: What Is It?

Bitcoin was the first decentralized cryptocurrency to launch back in 2009. Since then, many other digital currencies have been created but Bitcoin remains the most widely known. Introduced by Satoshi Nakamoto, Bitcoin acts as a unit of account or a store of value. Unlike usual currencies, however, it’s not issued by a government or governing body. 

Although cryptocurrencies aren’t issued by official governments, there is an increasing number of regulations designed to deal with issues of taxation. If you want to know more about how Australia taxes cryptocurrencies, including Bitcoin, visit the Australian Taxation Office (ATO) website.

All Bitcoin transactions occur on a peer-to-peer (P2P) network. Here, Bitcoins can be transferred from one user to another, without them needing to be passed through a central system or being approved by a single authority. 

Although the process is verified, the decentralized nature of these transactions means they can take place more quickly than alternative methods, such as standard money transfers at a bank. Similarly, buying and selling Bitcoin is typically cheaper than using traditional methods. Banks tend to charge high fees to make an international money transfer, for example, whereas there are low or no fees involved in making Bitcoin transactions.

How Are Bitcoin Transactions Made?

Transactions take place using a type of technology known as Blockchain. This acts as a record or ledger of every Bitcoin transaction that occurs so that ownership can be established. When a transaction is made, the information is sent to the decentralized network and added or ‘mined’ into the Blockchain. 

While the Blockchain keeps a record of who owns Bitcoin, this doesn’t necessarily mean that the cryptocurrency is linked to your name. Instead, Bitcoin owners use digital keys, similar to passwords, to access their currency and make transactions. 

Digital currencies are becoming more mainstream, and an increasing number of vendors now accept payments via Bitcoin. However, it is still a relatively new phenomenon. This, combined with a variety of other risk factors, mean that it’s generally considered to be a high-risk form of investment.

The Australian Securities and Investments Commission (ASIC) has lobbied for cryptocurrencies to be regulated to prevent them from being used by organized crime groups and the Australian Transaction Reports and Analysis Centre (AUSTRAC) has now been given some powers to monitor exchanges. However, it’s not yet clear what impact this regulation will have on merchant fees and the accessibility of exchanges. 

How to Buy Bitcoin in Australia

Before you get started, it’s important to know that Bitcoins are highly divisible. In fact, they can be divided by up to eight decimal points, so you don’t have to buy a whole Bitcoin. When the value of Bitcoin is high, purchasing a whole Bitcoin could cost hundreds of dollars, but you can buy a fraction of a Bitcoin if you want to experiment with trading. Many exchanges will permit you to buy or sell 0.1 Bitcoin, as an example.

There are numerous ways to buy Bitcoin in Australia but some of the most popular include:

1. Buying from a Bitcoin Exchange

Exchanges are hosted all over the world and enable you to buy or sell digital currencies from other users or vendors. Depending on the particular exchange you use, you can trade traditional currencies, like AUD, for digital currencies, such as Bitcoin. Alternatively, you can often use one digital currency, like Litecoin, to purchase another cryptocurrency, such as Bitcoin. 

However, every exchange has its own rules and fees, so be sure to check what the charges are before you decide which one to use. 

2. Accept Bitcoin for Services or Goods

If you run a business, have a side hustle, or even sell secondhand items online, you might decide to accept Bitcoin as a means of payment. However, you will need to have a Bitcoin wallet in order to receive and store the currency you receive. A wallet can be downloaded from the Google Play store or the Apple store, although there are other places to find them online too. Digital currency wallets are usually free to download but some providers do charge a small fee for storing your funds for you. 

Once you’ve got a currency wallet, you can choose to accept Bitcoin payments in various ways, such as:

  • Point of sale terminals that seamlessly integrate with your current payment systems.
  • QR codes that can be scanned using a mobile device, such as a smartphone.
  • Online payment processing systems that convert Bitcoin and other digital currencies into traditional currencies, such as AUD.

3. Bitcoin Mining

Miners verify Bitcoin transactions and ‘earn’ Bitcoins for doing so. Every transaction is secured with a virtual padlock, similar to a password. As a Bitcoin miner, you’ll run software that finds the key to the relevant padlock and unlocks it, thus facilitating a transaction. For every padlock that’s opened, you’ll receive a fraction of a brand new, unreleased Bitcoin.

Although Bitcoin mining is a legitimate way to ‘earn’ Bitcoins, you will need an extensive network to make a significant amount. Due to this, Bitcoin mining is usually carried out by entities with vast resources, rather than individual traders.

Storing Your Bitcoins

If you’re going to purchase Bitcoins, or any digital currency, it’s important to have somewhere safe to store them. Some exchanges will permit you to store them on their platform but it’s generally safer to store Bitcoins in a digital currency wallet.

The Apple Store and Google Play store are both popular options but it’s advisable to shop around and compare the various wallets available before you decide which one is right for you. Some wallets are best suited to frequent traders, for example, whereas others are ideal for storing small amounts. Similarly, wallets that are designed for mobile users often have a scannable QR code, which comes in handy if you want to authorize transactions on the go.

Where Can You Pay with Bitcoin in Australia?

Digital currencies are used online most frequently but some in-store environments are beginning to accept Bitcoin payments too. If you purchase goods from an online or physical store, for example, many vendors will allow you to pay with Bitcoin. 

As cryptocurrency becomes more mainstream, more and more companies and vendors are accepting Bitcoin payments. If you want to find out where you can use Bitcoin locally, Coinmap makes it easy to find businesses and shops that accept Bitcoin. You can use Coinmap to search globally for ATMs and businesses that allow you to pay with Bitcoin, so don’t hesitate to find Australian companies that are embracing this new form of payment.

Buying Bitcoin in New Zealand

The process of buying Bitcoin is similar all over the world. In fact, many exchanges are open to traders worldwide. However, it’s worth learning more about buying Bitcoin in New Zealand if you live on the islands or you’re planning to visit soon. 

FAQs

Does Australia have a premiere Bitcoin Exchange that you should use?

Finding the best Bitcoin exchange in Australia is a great way to make sure you have a smooth and positive experience each and every time. The best advice is to make sure you always use a cryptocurrency exchange for any Bitcoin purchase you make. There are actually a large number of these exchanges available, which means you’ve got many different routes to pursue. 

This type of exchange is under the jurisdiction of Australia’s financial intelligence regulator, which is called AUSTRAC. Now, that doesn’t guarantee the exchange has gone about getting their license, which is why it’s a good idea to look into it before using that exchange. As a newbie to Bitcoin, Swyftx is a great option for those needing a fiat-to-crypto gateway. The whole premise behind Swyftx is that it is user-friendly and always smooth, making for a simple process.

Has Australia legalized the right to purchase Bitcoin?

Another common question is whether or not it's legal to in fact purchase Bitcoin in Australia. You may be surprised to learn that Australia was actually among the first in the world, back in 2013, to give it the green light, which means that, yes, it is legal to buy it. In order to protect people, the country put into place various polices that are meant to keep things legitimate and regulated. These are the anti-money laundering (AML) steps.

Since its time of being legalized, it has gone through some changes, and as of 2017, it was designated as property. Until that point, it has been double taxed in the country, but now, thanks to that policy shift, it is only single taxed, falling under Capital Gains Tax (CGT). Now, if you're looking into mining Bitcoin, this is legal as well but there is one large stipulation - people must be sure to use their own computational and electricity power - or their own resources if you will.

There are lots of Bitcoin wallets to choose from, so which is the best?

As you start to dig a little deeper into Bitcoin and dip your toes into the world of cryptocurrencies, you'll quickly discover there are a number of digital crypto wallets out there. This can lead to the question of which one to choose from here in Australia? Experts tend to agree that a hardware wallet is the best option if you have any plans of long-term storage of your bitcoins. While online wallets may appear convenient and smart to use, the fact is that hackers can have a field day with them at your expense. It’s not something you want to be dealing with.

So, what makes hardware wallets a better option? These aren't actually attached to the internet so they aren't vulnerable to hackers. Another option is the internal wallet that Swyftx offers. This is ideal as a short-term solution.

Does the market in Australia allow me to use cash to purchase Bitcoins?

Maybe you want to be able to use cash in order to make your purchase, and the good news is that it is possible in Australia to do this. In fact, there are a few really great ways to go about it, making it convenient and safe. Your options include:

  • Using an exchange in Australia that features cash payments such as CoinJar and CoinSpot. These payments are known in the industry as "blueshift."
  • Use what's called a peer-to-peer exchange. With this method, you will actually physically meet with a person (a peer), give them the cash, and they will purchase the Bitcoin for you. A popular route for this option is Local Bitcoins.
  • Finally, you can deposit your cash in a Bitcoin ATM, which you can then withdraw from. This is done through what is called a liquid broker. That cash you withdraw can then be placed directly into your "wallet".

Where can I even find a Bitcoin ATM here in Australia?

If you like the idea of being able to use a Bitcoin ATM but aren't sure if there are any available in Australia, the good news is that there are options. There are currently 41 different Bitcoin ATMs across the country, all of which can be located using FindBitcoinATM. 

The number of available ATMs has been growing over the years and they are starting to spread to smaller cities. Originally, they could only be found in the big cities across the country, but thanks to their rise in popularity, this is changing.

I want to use cash when purchasing Bitcoins, can I?

Just because you want to get into buying Bitcoins, doesn't mean you feel like embracing all-digital aspects. What happens if you want to purchase bitcoins for cash? Let's face it, for many this is the most convenient, fastest, and most comfortable way to go about it. While it would be great to say there are tons of options, the fact is that peer-to-peer exchanges will be the only route you can use. You will need to meet up in-person with the individual who will take the cash from you in order to make the purchase.

If you don't like the idea of this option, you can locate a Bitcoin ATM and they purchase BTC from it. Tip - not all of these ATMs will accept cash, so be prepared with a different method of payment

Does Australia make it possible to make an anonymous purchase of Bitcoins?

Maybe you like the idea of staying anonymous and want to know if you can do so when purchasing Bitcoin in Australia. The best option in this case is to make use of the popular peer-to-peer exchanges, wherein you physically meet up with a person to give them the cash so they can make the purchase for you. With this type of transaction, you don't need any sort of documents like ID, so you can in fact stay anonymous. All you'll need for this option is to provide an email address.

Conversely, you can use trade on a centralized exchange by visiting a Bitcoin ATM. There are a number of these ATMs scattered across Australia. Just keep in mind that if you plan on making a fiat deposit, this is when you can no longer remain anonymous. You will in fact require some form of ID to do this.

Do I need to pay taxes on my Bitcoin in Australia?

Here's a really popular question, as people want to know just how much of that profit is theirs to keep. Back in 2017 the laws were changed for the better and they made it so that Bitcoin would be taxed under the Capital Gains Tax (CGT). Before that point, it was being taxed two times, meaning people were paying a lot more. Keep in mind that this CGT applies to the capital you make trading, selling, converting, exchanging, and gifting Bitcoin. It is rather sweeping, so it's smart to be prepared.

Of course, the notion of having profits taxed isn't new or unusual in the financial industry, it's just wise to be informed and know what to expect. If you want to keep up with trends, news, and changing policies, then you can visit the ATO website

I want to use a cryptocurrency exchange; how do I go about that?

In Australia, getting started with a cryptocurrency exchange is probably much easier than you would have thought. The good news is that anyone can start - you don't need any previous know-how or experience as newbies can easily get started. The best tip is to find a platform that is suited for beginners and is welcoming and approachable. You don't want to feel overwhelmed or out of your element. This is exactly why Swyftx is such a great option for beginners, as the platform is designed to be incredibly user-friendly, smooth, self-explanatory, and welcoming. Not only that, but you can perform crypto trades with fiat currency.

The way it works is that you make a deposit straight to your account using Australian dollars, and then you will be able to purchase Bitcoins. There is no third-party exchange involved, or having to mess with converting currencies. It's very fast, and best of all, it's very simple.

Is there a way to get quick access to Bitcoins in Australia?

If you don't want to have to jump through hoops and waste all kinds of time just getting access to Bitcoins, then you will be happy to know you've got options. It's always best to use your debit or credit card on a crypto exchange if speed is your number one criterion. Your payment is collected immediately, which speeds up the process, but you will also want to look into any extra costs that this may result in. In general, you can expect a fee to be applied to the transaction somewhere in the ballpark of 4-5%. This may not be of concern to you, or it may seem too high and have you looking for other ways to get Bitcoin. Also, there is a transaction limit that will be applied, so you won't have unlimited access.

I want to use Self-Managed Super Funds with my Bitcoin, is that possible?

Here in Australia, there are also Self-Managed Super Funds (SMSF) that can be used with your Bitcoin. We suggest that you head to the Bitcoin SMSF so you can read up on what it is, and how to go about it.

Can I take my Bitcoins and convert them into cash in Australia?

So, now that you've got Bitcoins, what can you do with them? Can you convert them into cash? The answer is, yes you can, and this is actually the best way to get the value out of your funds. Right now, there are plenty of places that do accept Bitcoin as a form of payment, but that doesn't mean it is widespread. It is far from being mainstream and until that happens, you're better off converting it to cash. 

Should you decide to go ahead and convert your Bitcoins to cash, you'll need to use a crypto exchange. There will likely be fees applied to the withdrawal you make, which is something to be aware of in advance. The funds will then be placed in your bank account.

To read our privacy policy click here.


Tags


You may also like

Swyftx vs CoinSpot vs Crypto.com

Swyftx vs CoinSpot vs Crypto.com

Best Crypto Exchanges in NZ

Best Crypto Exchanges in NZ
{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}
>